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if they are buying on the floor of the exchange people can choose not to sell

That is why they will not buy on the floor. Buying on the floor can make the price of the stock to move to about N60. Increasing your holding from about 45% to 80% is not an easy task, especially if you want to do it on the floor.

With 80% stake in the company, they can afford to do and undo. The next stage is for them to delist the company from the exchange. If shareholder activists, can put their acts together, the foreign investors may not succeed with their plan.

The parent company is actually investing the money by buying up shares to increase its stake from 46% to 80%. They are just going to take away more profits from Nigeria, while not investing to expand operations of the company. As a Nigerian investor I think this is not positive.

for now they don't have the simple majority, so they can't make that decision on thier own. The question is, does the company need the fund and what do they need it for?

That is why, I said if the other investors can come together and fight, the plan of the foreign investors will not materialise. But they can plan to denominate the right issue or convertible bond in foreign currency. That is when they will capitalise on the investors that can not raise the funds in the foreign currency.

That is why, I said if the other investors can come together and fight, the plan of the foreign investors will not materialise. But they can plan to denominate the right issue of convertible bond in foreign currency. That is when they will capitalise on the investors that can not raise the funds in the foreign currency.

This is too risky for nigerian investor. If they want to increase their exposure to nigeria, they should convert to naira

A situation whereby some foreigners want to take over a company through the back door is not good enough. The money needed for the expansion can be raised in Nigeria by the current shareholders or Nigerian Institutional investors.

read oga emma post. There would would be no rally. If there were to be, it would have started

There could be a short term rally based on the information, but i don't see a sustainable rally. The foreign investors will not buy on the floor of the exchange, they will rather invest more money in the company which will be later converted into shares.

There could be short term rally based on the information, but i don't see a sustainable rally. The foreign investors will not buy on the floor of the exchange, they will rather invest more money in the company which will be later converted into shares.

The rally has happened already....check it's performance this quarter. It will cool off today...

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when an earthworm begins to crawl like a millipede, it's time to run to the king's palace...naked! - horlads

A hen that leaves her chicks unguarded should not complain when the predatory hawk comes calling - horlads

A situation whereby some foreigners want to take over a company through the back door is not good enough. The money needed for the expansion can be raised in Nigeria by the current shareholders or Nigerian Institutional investors.

If you call what GSK did "thru the back door" then what'll you you call the OANDO deal, GSK has done nothing wrong and I don't even see any adverse effect to the economy in fact it's bringing in much needed FDI.

I just read the public announcement from GSK in today's punch that they want to increase their holdings to 80%. They hope to buy from investors at N48 per shares.
There are some legal terms in the notice that may require legal advice.